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In this paper, I develop and estimate a dynamic model of strategic network formation with heterogeneous agents. The main theoretical result is the existence of a unique stationary equilibrium, which characterizes the probability of observing a specific network in the data. As a consequence, the...
Persistent link: https://www.econbiz.de/10013069127
In this paper, I develop and estimate a dynamic model of strategic network formation with heterogeneous agents. While existing models have multiple equilibria, I prove the existence of a unique stationary equilibrium, which characterizes the likelihood of observing a specific network in the...
Persistent link: https://www.econbiz.de/10008697484
The main challenges in estimating strategic network formation models are the presence of multiple equilibria, and the fact that the number of possible network configurations increases exponentially with the number of players. I propose a dynamic model of strategic network formation with...
Persistent link: https://www.econbiz.de/10014038629
At the end of middle school, many low achieving students have to abandon hope of getting into selective high-school programs, which may be a source of disappointment and eventually lead them to dropout from high-school. Based on a randomized controlled trial, this paper shows that low-achieving...
Persistent link: https://www.econbiz.de/10010245945
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Peer influence on effort devoted to some activity is often studied using proxy variables when actual effort is unobserved. For instance, in education, academic effort is often proxied by GPA. We propose an alternative approach that circumvents this approximation. Our framework distinguishes...
Persistent link: https://www.econbiz.de/10014534496
This paper explores gender peer effects heterogeneity in adolescent Body Mass Index (BMI). We propose a utility-based non-cooperative social network model with effort technology. We allow the gender composition to influence peer effects. We analyze the possibility of recovering the fundamentals...
Persistent link: https://www.econbiz.de/10012919772